Is Darden Restaurants Stock a Good Investment?
Darden Restaurants Investment Advice | DRI |
- Examine Darden Restaurants' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Darden Restaurants' leadership team and their track record. Good management can help Darden Restaurants navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Darden Restaurants' business and its evolving consumer preferences.
- Compare Darden Restaurants' performance and market position to its competitors. Analyze how Darden Restaurants is positioned in terms of product offerings, innovation, and market share.
- Check if Darden Restaurants pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Darden Restaurants' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Darden Restaurants stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Darden Restaurants is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Darden Restaurants Stock
Researching Darden Restaurants' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.69. Darden Restaurants recorded earning per share (EPS) of 8.67. The entity last dividend was issued on the 10th of October 2024. The firm had 10000:8939 split on the 10th of November 2015.
To determine if Darden Restaurants is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Darden Restaurants' research are outlined below:
| Darden Restaurants has 6.73 B in debt with debt to equity (D/E) ratio of 2.89, meaning that the company heavily relies on borrowing funds for operations. Darden Restaurants has a current ratio of 0.51, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Darden to invest in growth at high rates of return. | |
| Over 100.0% of Darden Restaurants shares are held by institutions such as insurance companies | |
| On 1st of November 2024 Darden Restaurants paid $ 1.4 per share dividend to its current shareholders | |
| Latest headline from businesswire.com: Uber Announces Results for Third Quarter 2024 |
Darden Restaurants Quarterly Cash And Short Term Investments |
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Darden Restaurants uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Darden Restaurants. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Darden Restaurants' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of March 2024 Upcoming Quarterly Report | View | |
| 27th of June 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 27th of June 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of May 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Darden Restaurants' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Darden Restaurants' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1997-09-25 | 1997-08-31 | 0.1 | 0.11 | 0.01 | 10 | ||
1997-03-11 | 1997-02-28 | 0.08 | 0.07 | -0.01 | 12 | ||
1996-12-10 | 1996-11-30 | -0.04 | -0.05 | -0.01 | 25 | ||
1996-09-19 | 1996-08-31 | 0.1 | 0.09 | -0.01 | 10 | ||
2003-12-18 | 2003-11-30 | 0.16 | 0.18 | 0.02 | 12 | ||
1999-12-16 | 1999-11-30 | 0.1 | 0.12 | 0.02 | 20 | ||
1999-06-22 | 1999-05-31 | 0.2 | 0.22 | 0.02 | 10 | ||
1998-03-26 | 1998-02-28 | 0.11 | 0.13 | 0.02 | 18 |
Darden Restaurants Target Price Consensus
Darden target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Darden Restaurants' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 31 | Buy |
Most Darden analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Darden stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Darden Restaurants, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationDarden Restaurants Target Price Projection
Darden Restaurants' current and average target prices are 158.77 and 169.39, respectively. The current price of Darden Restaurants is the price at which Darden Restaurants is currently trading. On the other hand, Darden Restaurants' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Darden Restaurants Market Quote on 4th of November 2024
Target Price
Analyst Consensus On Darden Restaurants Target Price
Darden Restaurants Analyst Ratings
Darden Restaurants' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Darden Restaurants stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Darden Restaurants' financials, market performance, and future outlook by experienced professionals. Darden Restaurants' historical ratings below, therefore, can serve as a valuable tool for investors.Know Darden Restaurants' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Darden Restaurants is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Darden Restaurants backward and forwards among themselves. Darden Restaurants' institutional investor refers to the entity that pools money to purchase Darden Restaurants' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Newport Trust Co. | 2024-06-30 | 2 M | Jpmorgan Chase & Co | 2024-06-30 | 1.9 M | Bank Of America Corp | 2024-06-30 | 1.8 M | Wellington Management Company Llp | 2024-06-30 | 1.7 M | Earnest Partners Llc | 2024-06-30 | 1.6 M | Northern Trust Corp | 2024-06-30 | 1.3 M | Dimensional Fund Advisors, Inc. | 2024-06-30 | 1.1 M | Goldman Sachs Group Inc | 2024-06-30 | 1.1 M | Raymond James Finl Svs Advisors, Inc. | 2024-09-30 | 985.1 K | Capital World Investors | 2024-06-30 | 15.2 M | Vanguard Group Inc | 2024-06-30 | 13.8 M |
Darden Restaurants' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 18.76 B.Market Cap |
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Darden Restaurants' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | (0.01) | |
| Return On Capital Employed | 0.12 | 0.10 | |
| Return On Equity | 0.46 | (0.02) |
Determining Darden Restaurants' profitability involves analyzing its financial statements and using various financial metrics to determine if Darden Restaurants is a good buy. For example, gross profit margin measures Darden Restaurants' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Darden Restaurants' profitability and make more informed investment decisions.
Evaluate Darden Restaurants' management efficiency
Darden Restaurants has Return on Asset of 0.0741 % which means that on every $100 spent on assets, it made $0.0741 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4862 %, implying that it generated $0.4862 on every 100 dollars invested. Darden Restaurants' management efficiency ratios could be used to measure how well Darden Restaurants manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.0061. The current Return On Capital Employed is estimated to decrease to 0.10. As of now, Darden Restaurants' Net Tangible Assets are decreasing as compared to previous years. The Darden Restaurants' current Debt To Assets is estimated to increase to 0.55, while Non Currrent Assets Other are forecasted to increase to (627.3 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 18.70 | 19.00 | |
| Tangible Book Value Per Share | (3.24) | 3.98 | |
| Enterprise Value Over EBITDA | 13.49 | 12.09 | |
| Price Book Value Ratio | 7.89 | 4.12 | |
| Enterprise Value Multiple | 13.49 | 12.09 | |
| Price Fair Value | 7.89 | 4.12 | |
| Enterprise Value | 1.7 B | 1.7 B |
The strategic initiatives led by Darden Restaurants' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0351 | Forward Dividend Yield 0.0351 | Forward Dividend Rate 5.6 | Beta 1.304 |
Basic technical analysis of Darden Stock
As of the 4th of November, Darden Restaurants shows the Mean Deviation of 1.14, downside deviation of 1.16, and Coefficient Of Variation of 990.94. Darden Restaurants technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Darden Restaurants' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Darden Restaurants insiders, such as employees or executives, is commonly permitted as long as it does not rely on Darden Restaurants' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Darden Restaurants insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Darden Restaurants' Outstanding Corporate Bonds
Darden Restaurants issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Darden Restaurants uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Darden bonds can be classified according to their maturity, which is the date when Darden Restaurants has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| DARDEN RESTAURANTS INC Corp BondUS237194AM73 | View | |
| US237194AE57 Corp BondUS237194AE57 | View | |
| DARDEN RESTAURANTS INC Corp BondUS237194AL90 | View |
Understand Darden Restaurants' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Darden Restaurants' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0822 | |||
| Market Risk Adjusted Performance | 0.1687 | |||
| Mean Deviation | 1.14 | |||
| Semi Deviation | 0.9881 | |||
| Downside Deviation | 1.16 | |||
| Coefficient Of Variation | 990.94 | |||
| Standard Deviation | 1.68 | |||
| Variance | 2.81 | |||
| Information Ratio | 0.0618 | |||
| Jensen Alpha | 0.1035 | |||
| Total Risk Alpha | 0.0367 | |||
| Sortino Ratio | 0.0892 | |||
| Treynor Ratio | 0.1587 | |||
| Maximum Drawdown | 11.46 | |||
| Value At Risk | (1.78) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 1.35 | |||
| Semi Variance | 0.9764 | |||
| Expected Short fall | (1.42) | |||
| Skewness | 1.95 | |||
| Kurtosis | 7.71 |
| Risk Adjusted Performance | 0.0822 | |||
| Market Risk Adjusted Performance | 0.1687 | |||
| Mean Deviation | 1.14 | |||
| Semi Deviation | 0.9881 | |||
| Downside Deviation | 1.16 | |||
| Coefficient Of Variation | 990.94 | |||
| Standard Deviation | 1.68 | |||
| Variance | 2.81 | |||
| Information Ratio | 0.0618 | |||
| Jensen Alpha | 0.1035 | |||
| Total Risk Alpha | 0.0367 | |||
| Sortino Ratio | 0.0892 | |||
| Treynor Ratio | 0.1587 | |||
| Maximum Drawdown | 11.46 | |||
| Value At Risk | (1.78) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 1.35 | |||
| Semi Variance | 0.9764 | |||
| Expected Short fall | (1.42) | |||
| Skewness | 1.95 | |||
| Kurtosis | 7.71 |
Consider Darden Restaurants' intraday indicators
Darden Restaurants intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Darden Restaurants stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 11878.96 | |||
| Daily Balance Of Power | (0.38) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 159.06 | |||
| Day Typical Price | 158.96 | |||
| Price Action Indicator | (0.73) | |||
| Period Momentum Indicator | (0.88) | |||
| Relative Strength Index | 52.4 |
Darden Restaurants Corporate Filings
| 17th of October 2024 Other Reports | ViewVerify | |
8K | 11th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 8th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 1st of October 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify |
Darden Stock media impact
Far too much social signal, news, headlines, and media speculation about Darden Restaurants that are available to investors today. That information is available publicly through Darden media outlets and privately through word of mouth or via Darden internal channels. However, regardless of the origin, that massive amount of Darden data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Darden Restaurants news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Darden Restaurants relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Darden Restaurants' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Darden Restaurants alpha.
Darden Restaurants Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Darden Restaurants can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Darden Restaurants Historical Investor Sentiment
Investor biases related to Darden Restaurants' public news can be used to forecast risks associated with an investment in Darden. The trend in average sentiment can be used to explain how an investor holding Darden can time the market purely based on public headlines and social activities around Darden Restaurants. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Darden Restaurants' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Darden Restaurants and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Darden Restaurants news discussions. The higher the estimate score, the more favorable the investor's outlook on Darden Restaurants.
Darden Restaurants Corporate Directors
| Nana Mensah | Independent Director | Profile | |
| Timothy Wilmott | Independent Director | Profile | |
| Margaret Atkins | Independent Director | Profile | |
| Cynthia Jamison | Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Darden Restaurants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Darden Restaurants. If investors know Darden will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.087 | Dividend Share 5.33 | Earnings Share 8.67 | Revenue Per Share 95.695 | Quarterly Revenue Growth 0.01 |
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Darden Restaurants' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Darden Restaurants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.